- This is the decision issued by U.S. regulator NYDFS
- The reason is a violation of cybersecurity rules
- Cryptocurrency exchange has promised to “work on the errors”
Cryptocurrency exchange BitFlyer USA received a fine from the New York Department of Financial Services (NYDFS). They will pay $1.2 million for non-compliance with cybersecurity regulations.
It should be noted that the BitFlyer brand originated in Japan. But as of 2018, they operate in the U.S. and are required to comply with the laws in every state.
New York has its own cybersecurity requirements and if violations occur, local authorities can impose fines.
Financial regulator says BitFlyer USA does not meet state cybersecurity requirements.
But in the conclusion, they acknowledged the company’s desire to correct mistakes and strengthen its cybersecurity. The crypto-exchange has already filed a “work on mistakes” plan with the commission.
The purpose of the document is to tweak BitFlyer USA’s operations to comply with state laws.
BitFlyer was one of the latest “victims” in a string of sanctions from NYDFS. In January, the regulator got Coinbase to pay a $50 million fine.
Crypto exchange will pay him for allowing customers to register an account without personal data. Robinhood paid slightly less – $30 million.
This was punishment for violating AML and cybersecurity regulations. Robinhood will pay another $10.2 million due to technical issues that were fixed on the platform in 2020.
In 2020, Robinhood will pay out another $10.2 million due to technical issues that were fixed on the platform.